JOINT STATEMENT

Premier and Minister for Reconstruction
The Honourable Anna Bligh

Finance and Arts
The Honourable Rachel Nolan

Tuesday, May 03, 2011

Premium price for Abbot Point Coal Terminal boosts disaster recovery

The State Government has today finalised the 99 year lease of the X50 Abbot Point Coal Terminal, with proceeds to be directed to Queensland’s natural disaster recovery.

Premier and Minister for Reconstruction Anna Bligh said the Government had agreed to terms with Mundra Port Pty Ltd at a price of $1.829 billion.

Ms Bligh said as promised the proceeds would be set aside to fund Queensland’s share of the recovery from our summer of floods and cyclones.

“Following the catastrophic impact of the floods and Cyclone Yasi, the Government announced the proceeds from the lease of the Abbot Point Coal Terminal would help pay Queensland’s share of the recovery costs,” Ms Bligh said.

“This is a huge vote of confidence in the Queensland economy and in Queensland’s future.

“With these funds being committed to our reconstruction effort, it means the difficult decisions our government had to take are now paying off for Queenslanders when we need it most.”

Representatives of Mundra Port signed the documents in Brisbane this morning and advised the Indian Stock Exchange at 2.30pm (Brisbane time) this afternoon.

“This piece of infrastructure is designed purely to help coal companies make a profit. Taxpayers have done their bit to establish the terminal and entice investment, now it’s time for the private sector to take over.

“Because this is a long term lease, taxpayers will retain ownership of the Port land and existing infrastructure such as the jetty and the wharf.”

Mundra Port is the Australian subsidiary of Mundra Port and Special Economic Zone Ltd, which developed and manages the largest privately developed port in India and forms part of the Adani Group. The Adani Group is based in India and has substantial global interests in power generation, mining, oil and gas exploration and development and operations.

The Adani Group has recently shown its willingness to invest in Queensland, proceeding with plans for a $6.5 billion coal project in the Galilee Basin.

Under the deal the State retains ownership of the Port land, associated strategic infrastructure such as the jetty and wharves, and will continue to facilitate future private sector-funded expansion of export infrastructure within the broader port precinct.

Ms Nolan said the North Queensland Bulk Ports Corporation would remain as port authority for the Port of Abbot Point, responsible for the ongoing safety, security, efficiency and development of the Port.

No State employees are moving to the purchaser, as the port has long been operated privately by Xstrata, who will continue to operate the port.